Today's Webcast

[goyocafe]

Still not on?

[mnholdem]

Not for another hour and forty minutes.

[goyocafe]

Mar 13, 2017 17:23:24 GMT -5 mnholdem said:

Not for another hour and forty minutes.

Doh! 5:00 PM PT! Thanks.

[Deleted]

Slides are up. They reused the slides. No new content. Just keep tuned forever. Every slide says in progress. When will they say it's completed

[LosingMyBullishness]

Slides look very boring and irrelevant. delay in commercial. Delays and lack of progress. Wonder what last year hires in management are doing during their daily 10h of work?

[saxcmann]

I thought most telling comment from Matt saying he expected scripts to go up in next few weeks. Gonna get ugly if they don't?...

[peppy]

These scripts have to go up.
If Sports says the person that has been trying to get their script filled by CVS gets it, there is one.

Report is they can not get the scripts filled.

Matt said something.... suppliers

[sportsrancho]

Did anyone hear the questions? I got cut off.

[ilovekauai]

I missed the entire event. Was in a meeting till just now.

[boca1girl]

You didn't miss anything. I heard nothing new except that they expect scripts to tick up in the next few weeks with the new sales force.

The only question I heard, "What makes you believe the new sales force will be better than the contract sales force?" Matt's answer was better sales reps with greater sales incentives with bonuses and stock options.

[seanismorris]

Mar 13, 2017 19:45:39 GMT -5 boca1girl said:

You didn't miss anything. I heard nothing new except that they expect scripts to tick up in the next few weeks with the new sales force.

The only question I heard, "What makes you believe the new sales force will be better than the contract sales force?" Matt's answer was better sales reps with greater sales incentives with bonuses and stock options.

Did he say "tick up" or "pick up"?

A tick up, would be like 1 2 3 4...

A pick up, would be something significant + 100 (then maybe another + 100 every two weeks)

I don't have to say (do I) that a tick up with dozens of sales people pounding the pavement wouldn't be impressive.

[LosingMyBullishness]

Mar 13, 2017 19:33:03 GMT -5 peppy said:

These scripts have to go up.
If Sports says the person that has been trying to get their script filled by CVS gets it, there is one.

Report is they can not get the scripts filled.

Matt said something.... suppliers

Quite funny. Next time Sports see this one guy she should give him a free energy drink to say thanks for the statistically relevant increase.

[Deleted]

Mar 13, 2017 19:29:34 GMT -5 saxcmann said:

I thought most telling comment from Matt saying he expected scripts to go up in next few weeks. Gonna get ugly if they don't?...

MNKD has passed ugly.

[madog365]

Matt spent a lot of time talking about the new salesforce and how they are of a different caliber (experience/relationships/incentives). I'd like to believe they are seeing some good traction otherwise i don't think he would have made these statements - specifically how he expects improvements in script #'s soon.

Also keep in mind Mannkind is currently in a quiet period until the earnings are released. On Thursday's call we will hear much more when it comes to actual news and updates.

[MnkdWASmyRtrmntPlan]

Here's my transcript of the important stuff.


Contrary to other's takes on this, I think it was more substantial than I expected, and extremely positive.


Matt - 29th Annual ROTH Conference - March 13, 2017

Payers are more rewarding better outcomes. They're getting better coverage; better formulary access & so forth.
CGM is becomming more prominent & prevalent. That all plays nicely into the hands of Afrezza, since it is so fast in & out.
This will work well with social media as people are very vocal (with things like CGM)
Diabetes treatments are becoming REVolutionary.
Modest contract sales force stopped Sanofi's decline in sales
Switched to fully employee-based sales dept.
We're going to do a lot of better things to motivate them
Giving them better incentives: stock options
That new sales effort just kicked off a few weeks ago. It's now also much larger.
But you'll see that we think now is the time you should start watching the scripts and start seeing them turn out.
It takes awhile. It's not going to turn out over night, but this is right about the time when you should start seeing the effects of that new
sales force. That's not only larger, but we think much more experienced than the old one.
So, off to a slow start. No atypical at all in diabetes products. In fact, typically all of them got off to a slow start.
And, typically, the more revolutionary you are, the harder it is to get this kinda change in the mind of doctors and patients, but here's where
you should start to see it happening.

There's a fair amount of stigma associated with injections in public places. There are a fair amount of studies that show that the majority of
PWD don't inject themselves outside of the home.
Label-enhancement: Requested "Ultra-Rapid" acting
Initial trials weren't great. Time in Range was not that important when they got this label approved, but it is very important now.
Next Qtr they will start the next trial
Pediatrics study is starting late this month. They are finding ways to speed up that whole process.
Matt has had a lot of parents ask him about pediatrics
They have roughly-doubled the size of the sales force to drive sales
There are still white-space parts of the country they are not covering now
They have found that through our earlier efforts that it is promotionally sensitive. We see a direct correlation between promotional efforts
locally and the level of prescriptions in that area. Which gave us the confidence to go ahead and spend that money and invest in a much larger
sales force. The ones we just trained and that are out in the field now.
We haven't seen an uptick in scripts yet, but I'm counting on it in the next couple of weeks.
We are seeing to be doing a lot more in the DTC marketing. You've probably seen a couple releases from us. We have a TV show we're sponsoring.
Kind of a reality show for people with diabetes on Discovery Health that's coming up this Summer. But, you'll see a lot more like that coming.
We have some commercials in production, and you have to go through a few rounds with the FDA to have them approve the Story Boards and everything
you're able to say. But, we're in the thick of it right now, and you'll see those hitting the market fairly soon as well.
And, I'm happy to say we've done really, really done fabulously well in getting coverage from third-party reimbursements insurance companies. So,
I'm happy to say that today 70% of covered lives either are on formularies either with no prior authorization requirements, or what we call LIGHT
prior auth, which usually just means you follow the label (I'm not sure what that means). It doesn't mean you have to try everything else and
failed. That's one of the things we used to have to deal with.
And, we are going to be going into some International Expansion, so watch for that. We'll probably annoucnce those things as it happens. Those
things aren't typically quick. I think it's an area ripe for growth. Frankly, we need to get our sales volumes up to improve our margins in this
product. So, we wanted to expand in the US, but expanding overseas is a ripe market for us. Particularly in some of these jurisdictions where
avoiding injections is a major marketing advantage. We know that there are a lot of areas where people are just not very well controlled, and we
think this would be a nice product to introduce into some of those. The mid-east for example was a hot-button of Al's when he was around because
it's just so poorly controlled, and it's hard to get people to do their injections as they should in that region. We are evaluating other areas
as well, but, you know, pricing is always going to be an issue, so we'll hit them one at a time as we can do it.

Progressing our pipeline. We've had to starve some of these programs quite a lot because we just haven't had the cash to do it. We need Afrezza
to be successful before we go too far. Our EPI program has gotten a lot of press, given the controversy around epinepherine. But, we do have a
new inhaled EPI program. It's not in the clinic yet, but we've shown feasibility in formulation and so forth and its ready to move there. We do
meet with the FDA and that ? a clinical strategy, so I think that's ready to go. We also have some programs in ? trial. We think they're
attractive trials because of the way the regulatory path works for those. They're essentially generics at this point. We can reformulate them
into an inhaled formulation and give them some advantages. So, for example, for ? it's typically done with a nebulaizer. Its a long treatment,
and the treatment doesn't last terribly long. So, if you have a treatment that just lasts a few seconds like Afrezza, we think we would have some
interesting advantages. By the same token, ?-tron is typically given in the Doctor's office because it's an injection today. If we could give
them a home version by inhalation, that also has a nice advantages ? a chemo-induced nausea and vomiting setting. And, we continue to look at
other areas as well. ... Orally-inhaled PTH (see graph) rapid peak. So, this is exactly what you want to see for a trial like this. But, that
said, we need to get Afrezza to be more successful before we spend too much time and money working on them.

So, summarizing. We are committed to making Afrezza successful. We always believed it would be. It's been slower and longer than we thought it
was going to take. But, we're still committed to getting it there. The successes we've seen in the field are renewing our confidences in the
product every day. And, so we're in it to stay. We are spending pretty heavily to do things to make sure this is successful, expanding the sales
force and going into advertising, and so forth. We're also looking into International expansion, but that's more of a mid-term issue. And, then,
we are looking at complimentary products, and looking at the pipeline as a longer product. So, we don't want to be a one-trick pony, but those
are longer time away.

We'll get into the financials on Thursday. The good news is we did a lot to solidify our financial position and give us cash that will take us
comfortably into the second half of the year. We demonstrated we could do this. And these are some of the things we did in our negotiations with
Sanofi to relieve the debt? and get some cash, and also to change some of our supply arrangements.

What to expect for 2017? Sales force expansion has now occurred. Full-time employees. Only in the fied a couple weeks, so we won't see
immediate effects. But, usually within a month or two you would start seeing the uptick from that. DTC advertising will start later in this
half. We are changing our packaging configuration. The new sample packaging with the higher strength units are out there in the field. People
typically under-dose themselves, so this should help. We have the new flex-pack: 4, 8 & 12 will give a lot more flexibility in dosing. You do
need to titrate this medication, but it makes it easier if you have the right packaging.

We did submit a label-change to the FDA. We have a September ?. It will change some things like how we call the product. Some of the things we
found were just not correct on the label, as far as the kinetics and the dynamics of the drug worked.

Watch for a more aggressive digital media campaign that has in fact already kicked off. And, you should see some news about the pipeline and the
new clinical studies over the next few months.

Questions:
?
Have you considered using celebrities for advertising.
FDA says you need to keep things fair and balanced. So, for every postive thing you say, you have to say 3 things negative, and not many
celebrities like to do that. But, if they volunteer, they are much freer to say what they want.

What's the dif between old & new sales force. Quality of people are dramatically more experienced. They kept the best of the best. And we can
incent them differently with bonus programs. And, shockingly, even though the salesforce is twice as big, they are not costing us quite twice as
much. Unless of course they really start to sell, and that would be ok.